Cost In Earlier

Cost In Earlier

Cost, in earlier treatises on economics was explained in terms of real effort and sacrifice the 'toil and trouble' entailed in producing goods and services. The approach to cost generally accepted in our day is in terms of opportunities or alternatives forgone ('opportunity cost', 'alternative-use cost'). This approach regards the cost of acquiring goods as the need to forgo the enjoyment of other goods. If resources are used to produce one thing they cannot be used to produce others; therefore the cost of the one is the value of the alternatives forgone. The cost of using farm land to grow, say, barley is the value of the alternative crops that could have been grown on it instead.

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Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk site is therefore not a final statement of economic doctrine.

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